Brasada Capital Management’s Investment Thesis for CCC Intelligent Solutions (CCCS)
Brasada Capital Management, an investment management company, released its Q2, 2024 Investor Letter, a copy of which can be downloaded here. The market is dominated by a small number of very large technology companies. Almost 25% of the S&P 500 index is comprised of the top 5 names, approaching an all-time high level of concentration and these 5 names are responsible for almost 60% of the index’s year-to-date returns. The firm offers a variety of approaches to better meet each person's unique needs. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Brasada Capital Management highlighted stocks like CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS), in the second quarter 2024 investor letter. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is a software-as-a-service company for the P&C insurance economy. The one-month return of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) was -0.09%, and its shares gained 5.24% of their value over the last 52 weeks. On July 17, 2024, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) stock closed at $11.24 per share with a market capitalization of $6.988 billion.
Brasada Capital Management stated the following regarding CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) in its Q2 2024 investor letter:
"In order to give clients a more concrete example of our philosophy in action, we thought it would be helpful to start highlighting investments from our different strategies in these quarterly updates. Today, we would like to highlight CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS), a recent addition to our Friedberg Focused Equity and GCI Select Equity strategies.
CCCS is a business that is central to the automotive insurance ecosystem. Its software systems connect autobody repair shops with parts suppliers and insurance carriers. There are multiple necessary points of contact between these three parties in the process of settling a claim, and CCCS helps streamline it all in a way that gets cars off the lot and back to owners more quickly and efficiently. That's of immense value to the insurer (rental days) as well as the repair shop (labor hour throughput).
CCCS has the dominant position in this market with an installed base that includes all but 3 of the top 30 insurance carriers in the U.S as well as somewhere around ~30k out of ~35k autobody repair shops. Consider that ~80%+ of all US Auto Claims are running on the CCCS platform – this looks like a winner takes all market, and CCCS is already the winner….” (Click here to read the full text)
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CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) at the end of the first quarter which was 20 in the previous quarter. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) reported $227 million in revenues in the first quarter, up 11% compared to Q1 2023. While we acknowledge the potential of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) and shared Artisan Mid Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.